Dear All Users,
The following message is forwarded on behalf of BSG, LEGAD and J8.
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IN GENERAL
The refund of Value-Added Tax (VAT) on purchases of goods for personal use in the Netherlands will change for JFCBS entitled individuals (including our administratively supported units), starting as of today, the 1st of June 2021. Customs approved to start a new pilot to transition from a paper to an on-line system. See the Dutch Customs memo at the following link: Memo.
This pilot will last one year. During this pilot, VAT refunds will take place on-line via FORAX. After one year, and if considered this on-line system a success, the pilot will be formalised. One of the critical success factors of the pilot is the willingness and participation of entitled individuals to use the on-line VAT refund.
WHY YOU SHOULD REGISTER IN THIS ONLINE VAT REFUND SYSTEM WITH FORAX
– Make purchases in all shops with a NLD VAT number, instead of only making purchases through a limited number of licensed selected shops, as it is currently the case.
– Make online shopping purchase, although only if a shop has a NLD VAT number.
– Prevent a Customs Form 602 (Customs Tax Invoice) to be completed for the online system. You do not have to return to the shop to receive the VAT as everything is automated with the on-line system.
– Receive a VAT reimbursement on-line by using the exclusive client website on www.forax.eu or the FORAX app on your phone or tablet.
– Upload multiple invoices from different shops at once. The minimum amount of each invoice is € 45,00 excl. VAT. Please see below for non-eligible items.
VAT REIMBURSEMENT PROCESS WITH FORAX
Eligible individuals will have an account with FORAX, where they can upload their invoice to the online system, fill in the required data and submit it. After approval by Customs, FORAX will process the tax refund to the eligible individual.
For FORAX fuel card owners, FORAX will issue a combined statement with fuel transactions and approved VAT refunds to each entitled staff member. FORAX will subtract the reimbursable VAT from the invoice for the fuel purchased. If the balance between fuel purchases and VAT refunds is positive, FORAX will pay out the VAT to the individual’s bank account.
For eligible US and Canadian personnel and dependents, the VAT reimbursement will be calculated and paid out through FORAX on their bank accounts.
The FORAX service fee is 1,5% of the invoice value of the invoice, up to a maximum fee of € 50,00. Currently, there is an additional VAT charge (21%) over the 1.5% FORAX fee (resulting in a 1,815% gross amount).
Example:
Invoice amount of eligible goods excl. VAT: € 100
Invoice VAT amount: € 21
FORAX commission incl .VAT: € 2,20
Reimbursement by FORAX: € 21 minus € 2.20 Euro = € 18.80
ALTERNATIVE DURING THE PILOT PERIOD:
The current system with Form 602 will remain valid as alternative for staff choosing not to join the new online VAT refund processing:
– Customs Form 602 and the applicable procedures shall be used.
– Only licensed stores will be able to be used though as per the current system in place.
– Cost of € 3,00 per submitted form at the Pass & Registration section. You need to schedule a time slot via the booking system.
– You need to return to the shop to receive the VAT.
– The minimum amount of each invoice is € 45,00 excl. VAT. Form 602 is not yet adjusted to this new policy. Customs has provided a declaration of the new policy (see attachment), which can be used at the shop if necessary.
EXCLUDED FROM THE REFUND SYSTEM ARE:
– Goods purchased with a total invoice value of less than Euro 45 (excluding VAT)
– Permanent fixtures (e.g. saunas, whirlpools, heating and air-conditioning, windows, etc) on real estate e.g. house, garage, barn, shed, etc.).
– Services.
– Alcohol, tobacco products, food and drinks.
– Motor vehicles, boats and vessels, aircraft.
HOW TO PARTICIPATE?
- Existing FORAX fuel card users who are entitled to purchase VAT free goods in the Netherlands:
FORAX will provide a “pop-up” after logging on to your customer account on the FORAX website, showing you the option to activate the VAT Refund service.
- Newly arrived eligible personnel and personnel without a FORAX fuel card, including entitled dependents:
You can apply for an own FORAX account on www.forax.eu for the VAT Refund service. The mandatory details of staff members that will be required to upload/provide to the FORAX system: name, address, first seven digits of your AMIS card and an IBAN bank account number.
This service starts on the day FORAX receives confirmation from “JFCBS Passes and Registration Section” that the registered individual is validated and eligible. This may take up to two working days. Invoices dated before the validation date cannot be processed through FORAX, but need to be submitted via Form 602.
If your registration is refused by the FORAX system, but you consider yourself as entitled, please contact FORAX through the contact e-mail below and give your data and explanation. FORAX will coordinate with JFCBS Pass and Registration to confirm your eligibility and will –
if approved by JFCBS Pass and Registration – enable your registration.
INVOICE REQUIREMENTS
The invoice requirements should mention the name and address of the eligible individual as the buyer. In case this is not available, the invoice should be accompanied with a receipt of the “pin-bon” (ATM receipt with bank account number), a bank statement or credit card statement with registered member’s name on it.
BANKING REQUIREMENTS
Since VAT reimbursements are made through bank transfer to the individual’s bank account, the banking requirements are:
– A SEPA compliant international bank account (IBAN).
– All transactions are processed in EUR.
QUESTIONS?
FORAX can be contacted at info@forax.eu or on 070-891-2626.
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Regards,
IKM Office
